Where cozy means tiny and charming means needs work.
Short for capital expenditures—the big-ticket repairs and improvements to a property that extend its useful life, like a new roof or HVAC system. These are the expenses that make landlords weep into their tax returns.
Old-school market analysis conducted by physically walking neighborhoods, talking to locals, and observing street-level details that data can't capture. It's what investors did before algorithms tried to tell us everything.
Properties available for purchase that aren't publicly listed on the MLS or advertised to the general public. These are deals found through networking, direct marketing, or knowing someone who knows someone—real estate's version of insider trading, but legal.
A property marketing status indicating a listing will be active shortly, used to generate buzz and pre-market the property before it officially hits the MLS. It's the real estate equivalent of a movie trailer, complete with the same level of hype.
Common Area Maintenance charges—fees in commercial leases where tenants reimburse landlords for shared expenses like landscaping, snow removal, and parking lot maintenance. It's how landlords outsource their property bills to the people renting from them.
The increased value created when adjacent properties are combined into a larger, more useful parcel. It's the financial proof that sometimes the whole really is worth more than the sum of its parts.
A formal eviction warning telling tenants to pay up, shape up, or get out. The landlord-tenant relationship's breakup letter, now with legal consequences.
Written proof that down payment money from family is a gift, not a loan, satisfying lenders' paranoia about hidden debts. The documented promise that Mom won't ask for it back.
A loan that pays elderly homeowners monthly while they live in their home, essentially converting equity to cash until they die or move. Your house paying you rent, with a hefty price tag.
The real estate agent's crystal ball that uses nearby home sales to predict what yours might sell for. It's part science, part art, and part wishful thinking depending on who's paying for it.
A sale term indicating the property is being sold in its current state with no repairs, warranties, or guarantees from the seller. Translation: buyer beware, because that mysterious smell and creaky foundation are now your problems.
The illegal practice of mixing client funds (like earnest money) with personal or business operating accounts, a violation that can cost real estate agents their licenses. It's the financial equivalent of inviting the state licensing board to audit your worst decisions.
When a structure, improvement, or object from one property illegally extends onto a neighboring property. It's your neighbor's fence being three feet on your side, discovered precisely when you're trying to sell.
A prepayment penalty on commercial loans calculated to ensure the lender receives their originally expected yield, even if you pay off the loan early. It's the financial equivalent of breaking up with your bank and having to pay damages.
A spreadsheet listing all tenants in a rental property along with their lease terms, payment history, and unit details—basically the property's financial DNA. It's the first thing savvy investors scrutinize when evaluating a deal.
A rent-to-own arrangement combining a rental lease with an option to purchase, letting tenants test-drive homeownership while locking in a future price. It's dating-before-marriage for real estate, popular when buyers can't qualify for financing yet.
Zoning rules dictating the minimum distance a building must sit from property lines, streets, or other structures, preventing neighbors from building right up to your fence line. It's mandatory personal space for properties.
In real estate, it's the money you throw at a seller to prove you're serious about buying their overpriced house and not just window shopping. This deposit gets held in escrow as collateral for your commitment, because apparently your word means nothing without cash backing it up. Lose it if you back out, keep it applied to the purchase if you follow through—it's basically a financial pinky promise.
A loan where the borrower remains personally liable even after foreclosure if the property sells for less than owed. It's the lender's insurance policy that you can't just walk away.
A financing technique where someone pays upfront to reduce the interest rate on a mortgage, either temporarily or permanently. It's like paying for a discount on your discount.
The minimum required distance between a building and the property line or street, dictated by zoning laws. Your municipality's way of ensuring you can't build right up to the sidewalk.
Annual net income divided by annual debt payments, basically whether you're making enough money to pay your mortgage.
A property owner who rents to tenants and spends their free time calling a plumber or texting the tenant about the rent check that's three days late.
Discounted Cash Flow analysis—a valuation method projecting future cash flows and discounting them to present value; the quantitative investor's favorite way to prove their thesis.